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How to work remotely in Luxembourg

Remote work in Luxembourg requires both employer and employee to be familiar with the basic legal acts governing this field. In this guide we detail the complexities that can arise and look at the rights and obligations of both parties.

Steps

Remote working has become an indispensable part of modern business, and increasingly both employees and managers favour this form of employment. However, in Luxembourg, there is a certain procedure for transferring an employee to remote work.

Examine the regulations

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Remote working in Luxembourg is governed by the General Collective Agreement (GCA) of 20 October 2020. It sets out the basic rules and conditions for the effective functioning of the regime. It also lays down procedures to prevent disputes.

Key legal provisions:

Remote work must be mutually agreed upon by the employer and the employee. An employer cannot force an employee to work remotely;
The GCA emphasises the right to disconnect outside of working hours, ensuring that remote workers have the same boundaries as in-office employees;
Employers should ensure that remote and office-based employees are treated equally in terms of working conditions, remuneration, promotion opportunities and access to training;
If the remote worker lives outside Luxembourg, the employer must declare this to the Centre for Social Security (CCSS);
The tax consequences depend on bilateral agreements between Luxembourg and the country of residence of the remote worker.

The employer must also ensure that a reliable technological infrastructure is in place to enable the employee to work remotely:

Secure IT systems

Employers need to provide secure remote access to company IT systems and data to ensure operational efficiency.

Communication tools

Effective communication is paramount. Equipping employees with video conferencing tools, instant messaging platforms and collaboration software facilitates seamless collaboration.

Ergonomics

Employers may be responsible for creating an ergonomic home office environment to improve employee health and well-being. However, this is not a direct obligation of the employer.

In terms of direct duties, the GCA sets out 4 rules:

Policy development

Establishing a clear and comprehensive remote working policy outlining eligibility criteria, working hours, equipment provision, communication protocols and data security measures is vital.

Training

Training employees on remote working tools, cybersecurity practices and time management techniques empowers them to thrive in a remote environment.

Performance management

Setting clear performance expectations and effective remote performance evaluation methods ensure consistent performance.

Communication and co-operation

Fostering a culture of open communication and collaboration through regular virtual meetings, team building exercises and knowledge sharing initiatives is critical to maintaining team spirit and employee engagement.

Familiarise yourself with work schedule options

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Remote work is one of the varieties of atypical work schedule. In addition to it, there are three other varieties. Explore them and you may find a more suitable solution:

Flexible work schedule

Allows employees to adjust their daily or weekly working hours within a set time frame. In other words, the employee is not obliged to be on site from 9 to 6, but can use the most acceptable schedule. Important condition: the employer must be satisfied with the quality of work and the number of hours must not be lower than the company's standard.

Reduction of working hours

This arrangement allows employees to work fewer hours per week compared to a standard full-time contract. This option is most often taken up by women in Europe, but there is no stopping men from also considering this option.

Shared responsibilities

In this arrangement, two or more employees share the responsibilities of a full-time position. This reduces the workload of one employee and improves their overall wellbeing.

If none of the options are suitable, proceed to the next step.

Make an agreement with the employee

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Negotiating with a potential remote worker is an important part of the approval process.

Working remotely is neither a right nor an obligation

This means that an employer cannot force an employee to telecommute. Neither can the employee demand that the employer work remotely. All this is only possible with mutual consent.

It is also important to realise that the rules for switching to telecommuting depend on the time the employee stays at home. If it is an insignificant part (less than 10%) of working time, the employee only needs the employer's written consent. Receive it either in person or by work mail.

If remote work is of a regular nature, i.e. it takes up more than 10% of the time, the employee and the employer must conclude a written contract.

It prescribes:

a place of remote work;
the hours and days of the week when the employer must be in touch with the employee;
conditions for possible compensation for benefits in kind lost as a result of telecommuting;
monthly fixed rate of connection and communication costs;
conditions of transition or return to the traditional organisation of work.

Cross-border workers

If you want to telecommute an employee who lives in another country, it is a good idea to remind them of Luxembourg's taxation and social security system.

This part is not mandatory for the employer, but this is how you show your interest in the employee's well-being.

The problem is that for residents of other countries there are certain quotas on the time limit for remote work per year. For France, Belgium and Germany it is 34 days.

If the number of days away is less than or equal to this value, the employee continues to pay taxes in Luxembourg. If the number of days away is greater than or equal to this value, the employee continues to pay taxes in Luxembourg.

The same applies to the social security system. However, in this case the quota is higher: 49.9% of working time at the maximum, i.e. about 112 days annually. If the threshold is exceeded, the worker loses his/her affiliation to the CCSS.

We remind you that the employer is obliged to inform the CCSS if the remote worker resides outside Luxembourg.

Consider the additional costs

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By transferring an employee to work from home, the employer assumes some of the financial obligations of maintenance.

Technology and working tools

The employer may provide the technical means necessary for the employee to work remotely. In such a case, the employee is not entitled to claim additional compensation.

Cost savings

An employer does not have the right to demand compensation from his employee for money not spent. For example, you cannot deduct from the salary of a specialist the travelling expenses he has saved by working remotely.

Compensation for work

The employer is obliged to reimburse expenses directly related to the performance of duties. These include: internet, communication, fuel, if the employee uses a personal car for business trips, light and some others. All types of reimbursements must be specified in detail in the contract. In some cases, the employer may reimburse the cost of new furniture for work: a chair and a desk.